A property valuation is one of the most important steps when selling, buying, financing or inheriting property. Many property owners base their prices on emotions, comparisons with their neighbours' sales or personal impressions of the neighbourhood, but the market rarely follows this logic. That is why a professional valuation is essential to set a realistic price and increase the chance of a successful sale within a reasonable time.
In practice, an incorrect valuation can mean that the property is overvalued and therefore sits on the market for a long time, or undervalued and is sold below its real value. This is especially important in a market where even a few thousand euros can affect the visibility of the ad and the interest of buyers. That is why an appraisal is not just a formality, but a tool for making smart financial decisions.
What affects the value
A number of factors affect the value of a property, the most important of which is location. This includes both macro-location, i.e. the wider area and neighbourhood, and micro-location, such as location within the street, proximity to schools, shops, public transport or green spaces. Buyers often pay more for a property that saves them time and offers a better quality of life.
In addition to location, the area, number of floors, layout of rooms, condition of the property, age of the building, parking space, balcony, terrace, storage room, garden or garage are also important. Market conditions, i.e. the supply and demand ratio, as well as the current state of the real estate market, also have an impact. Two almost identical apartments can have different prices just because of their orientation, view, maintenance or the impression they make on the buyer.
How the appraisal is done
A professional appraisal of a property usually begins with a tour of the property and collecting documentation. The appraiser then analyzes the property itself, its location, market condition and comparable properties sold in the area. Based on this, he or she creates an appraisal report or market analysis, depending on the purpose of the appraisal.
Three methods are most commonly used. The comparative method compares the property with similar properties that have recently been sold in the same area (most often for apartments). The cost method estimates how much it would cost to build a similar property minus depreciation (most often for houses). The income method is used for properties that generate income, such as commercial premises.
When you need an appraisal
A property appraisal is useful in more situations than it seems at first glance. It is most often needed before a sale, when buying on credit, when refinancing, for property division, inheritance or after renovation. In such moments, an accurate appraisal helps to avoid unpleasant differences between the expected and actual market value.
If a property is purchased with a bank loan, an official appraisal is required, prepared by a certified court appraiser or certified court expert. Such an appraisal is important because the bank does not approve the loan based on the seller's desired price, but on the estimated market value.
How long does it take and cost
The duration of the appraisal depends on the complexity of the property, the availability of documentation and the agreement with the appraiser. In practice, it is often a few days to a week, while more complex cases can take longer. The more orderly the documentation, the faster and more accurate the process.
The price of the appraisal also varies depending on the type and value of the property. According to available sources, it ranges from around 200 to 800 euros, while for apartments and houses it usually falls in the middle range. With housing loans, banks sometimes cover the cost of the appraisal, which can make the process much easier for buyers.
Why choose an expert
Although the owner can research the ads themselves and get a rough idea, such an appraisal is often not precise enough. The expert takes into account information that the average seller easily overlooks, such as a real comparison with sold properties, market rhythm, technical condition and specific advantages or disadvantages of the property. This is precisely why a professional appraisal brings security and a better negotiating position.
Agencies like RESIDENT Nekretnine can also help you with this, combining market experience and insight into local demand to make the appraisal as realistic as possible. If you are selling a property, the correct starting price is often crucial for the speed of the sale and the final amount you will realize.
If you want to find out how much your property is worth, take advantage of our free real estate appraisal.
Conclusion
Assessing the value of real estate is not just a number on paper, but the basis of a good decision when selling, buying or investing. A realistic appraisal saves time, reduces risk and helps the property to be properly positioned on the market. In a constantly changing market, a professional approach usually brings the best result.